Fidelity backtracks on research costs to avoid 'disproportionate consequences' for clients

Announced last October would be passing on to clients

Tom Eckett
clock • 4 min read

Fidelity International has joined the majority of its asset manager peers in deciding to absorb external research costs, instead of passing them onto clients, reversing plans it made last year.

This will apply across all of its products, retail, wholesale and institutional investors and geographical location. The firm said the reason for the change was because it did not want its clients to face "disproportionate operational and reporting consequences". Last October, when Fidelity unveiled details of its new variable management fee (VMF) model, the firm also said it will adopt the CSA-RPA model for procuring third-party research post MiFID II, which will see the client take on the cost of research, although the reduction of its base management fee will exceed and offset the ...

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